Steele bill on shared business spaces signed into law with bipartisan support

CHELAN — A bill sponsored by state Rep. Mike Steele, R-Chelan, aimed at updating Washington’s liquor licensing rules for shared business spaces has been signed into law, following unanimous, bipartisan passage in the Legislature.

House Bill 1701 allows multiple liquor license holders to operate within the same facility under separate licenses, a model increasingly used by businesses such as food halls, shared marketplaces and multi-tenant hospitality venues.

The measure passed with support from both Republican and Democratic lawmakers, with no recorded opposition in either chamber, and takes effect June 11.

Under the new law, businesses including breweries, wineries, distilleries and restaurants may lease space within a shared facility, including kitchen space, as long as each maintains its own permits and complies with state regulations.

The legislation also clarifies that such arrangements do not violate Washington’s tied-house laws, which are designed to prevent certain financial relationships between alcohol producers, distributors and retailers.

In a statement, Steele said the bill was prompted by conversations with constituents looking for more flexible business models.

“This is about bringing Washington’s laws in line with how businesses actually operate today,” Steele said. “Entrepreneurs are finding creative ways to collaborate, share space, and reduce costs. This law gives them the flexibility to do that while maintaining strong consumer protections.”

Testimony in support of the bill described it as a practical response to existing barriers in state law, where a business owning a facility could not lease space to independent operators unless they shared ownership.

Supporters said the change would allow multiple businesses — such as a winery, brewery and kitchen — to operate independently within the same building while maintaining clear regulatory separation. They also pointed to potential benefits for small businesses, including shared infrastructure, reduced startup costs and the ability to grow more sustainably.

From a consumer perspective, testimony noted the model could expand options by allowing food and beverage offerings to operate side by side in regulated environments.

The law includes provisions intended to maintain that separation. Each licensee must retain independent ownership and control of its premises, and agreements that require profit-sharing or exclusive product arrangements between tenants are prohibited.

Supporters said the measure provides flexibility for entrepreneurs while preserving oversight, with each business remaining fully licensed, inspected and accountable for its own operations.

Andrew Simpson: 509-433-7626 or andrew@ward.media